Siemens Healthineers reported revenue growth in the second quarter of 2025 compared with last year, but adjusted its outlook for the full year due to recent increased tariffs on a wide range of countries.
The company posted revenues of 5.9 billion euros ($6.7 billion U.S.) in the second quarter (end-March 31), an increase of 6.8% compared with 5.4 billion euros ($6.1 billion) in the same quarter last year.
Net income in the second quarter was 537 million euros ($609 million), up 25% from the prior-year period, and its free cash flow reached almost 200 million euros (4226 million), up from 120 million euros ($136 million) in the prior-year quarter, the company said.
Siemens cited its imaging and Varian segments for the strong growth. Revenue in the imaging segment rose 8.7% over the second quarter last year to 3.3 billion euros ($3.7 billion). The company’s molecular imaging segment showed sharp growth, and CT grew very strongly.
From a geographical perspective, the company’s imaging segment in the Americas region showed sharp comparable growth, and in the Asia Pacific Japan region, revenue rose slightly. Meanwhile, revenue in the China region declined slightly due to continued delays in customer orders, Siemens noted.
Revenue in the Varian segment rose by 12.5% on a comparable basis in the second quarter to around 1 billion euros ($1.13 billion) compared to a slight decline in the prior-year quarter. The Asia Pacific Japan region showed sharp growth, and the Americas region showed significant growth. In the China region, revenue rose strongly against a sharp decline in the prior-year quarter.
The company’s earnings before interest and taxes (EBIT) rose by 19% to around 982 million euros ($1.1 billion) in the second quarter from the prior-year period. This resulted in an adjusted EBIT margin of 16.6%, also higher than in the prior-year quarter, Siemens said.
In its outlook for fiscal year 2025, the company estimated revenue growth of between 5% and 6% over fiscal year 2024, yet lowered the bottom of its forecast range for adjusted basic earnings per share to 2.2 euros to 2.35 euros.
“We expect that the significantly increased volatility of the geopolitical environment will weigh on our business this year. That leads us to widen our guidance range for adjusted basic earnings per share for fiscal 2025,” said Chief Executive Officer Bernd Montag.
